Skip to main content
SpringerLink
Log in

Coordinating Production Improvement in International Production Networks: What’s New?

  • Chapter
  • First Online:
International Operations Networks

Abstract

How can a multinational firm simultaneously improve the productivity of all its factories? A popular answer is to develop and deploy multi-plant production improvement programmes. Inspired by the sustained success of the Toyota Production System, many companies develop their own company-specific production systems (XPS) and implement them in their dispersed networks of plants. This paper explores what is new in how multinational companies coordinate the improvement of operations on a corporate level. A multiple-case method is used to investigate the production improvement programmes of four Scandinavian multinationals: Elkem, Hydro, Jotun and Volvo. It is suggested that an XPS differs from how companies traditionally have organised improvements in production in three ways: First, it is a lasting strategic programme and not a project. Second, it is tailored to the specific characteristics of the company. Third, it creates a common corporate language for production improvement in all parts of an organisation and in all corners of the world, enabling an easier transfer of practices and learning among plants in the network. These characteristics offer several implications for practice, especially for multinational firms that have yet to start coordinating production improvement in their networks of plants.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Aa OA, Anthonsen H (2011) Management of best practices in multinational companies: a comparative case study concerning implementation of operations best practices in two subsidiaries of the jotun group. Industrial Economics and Technology Management, Trondheim, NTNU

    Google Scholar 

  • Alvær I, Westgaard SH (2012) Implementation of company-specific production systems (XPS) in multinational companies: a comparative case study concerning implementation of XPS in two subsidiaries of Elkem. Industrial Economics and Technology Management, Trondheim, NTNU

    Google Scholar 

  • Barratt M, Choi TY, Li M (2011) Qualitative case studies in operations management: trends, research outcomes, and future research implications. J Oper Manage 29(4):329–342

    Article  Google Scholar 

  • Bartlett CA, Ghoshal S (1998) Managing across borders: the transnational solution. Harvard Business School Press, Boston, Mass

    Google Scholar 

  • Bateman N (2005) Sustainability: the elusive element of process improvement. Int J Oper Prod Manage 25(3/4):261–276

    Article  Google Scholar 

  • Choi TY, Hong Y (2002) Unveiling the structure of supply networks: case studies in Honda, Acura, and DaimlerChrysler. J Oper Manage 20(5):469–493

    Article  Google Scholar 

  • Colotla I, Shi Y, Gregory MJ (2003) Operation and performance of international manufacturing networks. Int J Oper Prod Manage 23(10):1184–1206

    Article  Google Scholar 

  • Eide TLH (2012) Critical success factors for managing company-specific production systems. Industrial Economics and Technology Management, Trondheim, NTNU

    Google Scholar 

  • Eisenhardt KM (1989) Building theories from case study research. Acad Manage Rev 14(4):532–550

    Google Scholar 

  • Feggeler A, Neuhaus R (eds) (2002) Ganzheitliche Produktionssysteme—Gestaltungsprinzipien Und Deren Verknüpfung. Köln, Wirtschaftsverlag Bachem

    Google Scholar 

  • Ferdows K (ed) (1989) Managing international manufacturing. New York, North-Holland

    Google Scholar 

  • Ferdows K (1997) Made in the world: the global spread of production. Prod Oper Manage 6(2):102–109

    Article  Google Scholar 

  • Ferdows K (2008) Managing the evolving production network. In: Galavan R, Murray J, Markides C (eds) Strategy, innovation, and change: challenges for management. Oxford University Press, Oxford

    Google Scholar 

  • Ghoshal S, Bartlett CA (1988) Creation, adoption, and diffusion of innovations by subsidiaries of multinational corporations. J Int Bus Stud 19(3):365–388

    Article  Google Scholar 

  • Hammer M, Champy J (1995) Reengineering the corporation: a manifesto for business revolution. Nicholas Brealey, London

    Google Scholar 

  • Henderson KM, Evans JR (2000) Successful implementation of six sigma: benchmarking general electric company. Benchmarking Int J 7(4):260–282

    Article  Google Scholar 

  • Jensen R, Szulanski G (2004) Stickiness and the adaptation of organizational practices in cross-border knowledge transfers. J Int Bus Stud 35(6):508–523

    Article  Google Scholar 

  • Juran JM (1988) Juran on planning for quality. Free Press, New York

    Google Scholar 

  • Kogut B, Zander U (1993) Knowledge of the firm and the evolutionary theory of the multinational corporation. J Int Bus Stud 24(4):625–645

    Article  Google Scholar 

  • Lewis MW (1998) Iterative triangulation: a theory development process using existing case studies. J Oper Manage 16(4):455–469

    Article  Google Scholar 

  • Liker JK (2004) The Toyota way: 14 management principles from the world’s greatest manufacturer. McGraw-Hill, New York

    Google Scholar 

  • Mcdonald CJ (1998) The evolution of Intel’s copy EXACTLY! technology transfer method. Intel Technol J Q4(98):1–6

    Google Scholar 

  • Netland TH (2013) Exploring the phenomenon of company-specific production systems: One-best-way or own-best-way? Int J Prod Res 51(4):1084–1097

    Article  Google Scholar 

  • Netland TH, Aspelund A (2013) Company-specific production systems and competitive advantage: a resource-based view on the Volvo production system. Int J Oper Prod Manage 33(12):1511–1531

    Article  Google Scholar 

  • Netland TH, Aspelund A (2014) Multi-plant improvement programmes: a literature review and research agenda. Int J Oper Prod Manage 34(1):5

    Google Scholar 

  • Netland T, Sanchez E (2012) People at the wheel—Volvo’s lean journey. Lean Manage J 35–36

    Google Scholar 

  • Ohno T (1988) Toyota production system: beyond large-scale production. Productivity Press, New York

    Google Scholar 

  • Porter ME (1986) Changing patterns of international competition. Calif Manage Rev 28(2):9–40

    Article  Google Scholar 

  • Schonberger RJ (1986) World class manufacturing: the lessons of simplicity applied. ASQC Quality Press, Milwaukee

    Google Scholar 

  • Schonberger RJ (2007) Japanese production management: an evolution—with mixed success. J Oper Manage 25(2):403–419

    Article  Google Scholar 

  • Shingo S, Dillon AP (1989) A study of the Toyota production system from an industrial engineering viewpoint. Productivity Press, New York

    Google Scholar 

  • Sousa R, Voss CA (2008) Contingency research in operations management practices. J Oper Manage 26(6):697–713

    Article  Google Scholar 

  • Stake RE (1994) Case studies. In: Denzin NK, Lincoln YS (eds) Handbook of qualitative research. Sage Publications, Thousand Oaks

    Google Scholar 

  • Szulanski G (1996) Exploring internal stickiness: impediments to the transfer of best practice within the firm. Strateg Manage J 17(Winter):27–43

    Article  Google Scholar 

  • Voss C, Tsikriktsis N, Frohlich M (2002) Case research in operations management. Int J Oper Prod Manage 22(2):195–219

    Article  Google Scholar 

  • Womack JP, Jones DT, Roos D (1990) The machine that changed the world. Rawson Associates, New York

    Google Scholar 

  • Yin RK (2009) Case study research: design and methods. Thousand Oaks, CA, Sage

    Google Scholar 

Download references

Acknowledgments

This paper has benefited from the master theses of M.Sc. Ole André Aa, M.Sc. Henning Anthonsen, M.Sc. Ingrid Alvær, M.Sc. Silje Westgaard and M.Sc. Thomas L. H. Eide at NTNU. Further, I want to thank our contact persons in Elkem, Jotun, Volvo and Hydro for their exceptional hospitality and support.

Author information

Authors and Affiliations

  1. Industrial Economics and Technology Management, Norwegian University of Science and Technology (NTNU), Trondheim, Norway

    Torbjørn H. Netland

Authors
  1. Torbjørn H. Netland
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Torbjørn H. Netland .

Editor information

Editors and Affiliations

  1. Aalborg University, Aalborg, Denmark

    John Johansen

  2. Aalborg University, Aalborg, Denmark

    Sami Farooq

  3. Aalborg University, Aalborg, Denmark

    Yang Cheng

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer-Verlag London

About this chapter

Cite this chapter

Netland, T.H. (2014). Coordinating Production Improvement in International Production Networks: What’s New?. In: Johansen, J., Farooq, S., Cheng, Y. (eds) International Operations Networks. Springer, London. https://doi.org/10.1007/978-1-4471-5646-8_8

Download citation

  • DOI: https://doi.org/10.1007/978-1-4471-5646-8_8

  • Published:

  • Publisher Name: Springer, London

  • Print ISBN: 978-1-4471-5645-1

  • Online ISBN: 978-1-4471-5646-8

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation